The megafund would be buying unmarketable mortgage-backed securities from sellers wishing to bail out of their SIV funds, so M-LEC would acquire the securities at below-market prices.

Treasury acted only as a broker for M-LEC and contributed no funds to it.

financial policy seemed to be frozen as well, unable to quickly fund M-LEC, unable to begin trading mortgage assets again, with policymakers unwilling to roll back the financial engineering that had provided such cheap mortgage financing for almost 20 years.

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